• AI‑ready data centres reshape power, cooling and structural designs; driving up development costs
“Across Asia Pacific, construction cost inflation diverges sharply, with some markets seeing increases above 15% while others remain below 5%,” said Andrew Green, Head of Data Centre Group, Asia Pacific.
“A key reason for this split is that AI is reshaping the physical and technical requirements of data centres, particularly at the shell and core level. Higher power density, more complex cooling systems and stronger structural requirements are becoming standard in AI‑ready facilities, with very different cost implications depending on local power availability, labour capacity and delivery conditions.”
As AI adoption accelerates, its influence on core design standards is becoming more pronounced. Facilities are increasingly planned around higher density compute and advanced cooling approaches, setting a new baseline for next‑generation development.
Pritesh Swamy, Head of Research & Advisory – Data Centre Group, Asia Pacific, said, “AI is transforming data centre design far faster than traditional development cycles anticipated. Each new generation of high‑performance hardware demands more power, more cooling and greater structural resilience. These requirements are redefining what it means to build a future‑ready facility, and markets that can meet them effectively are pulling ahead while others face rising delivery and cost pressures.”
Structural Forces Shaping Costs Across APAC
In established hubs such as Tokyo, Singapore, Sydney, Taipei and Johor, competition for power‑accessible sites, grid capacity constraints and longer connection timelines are increasing development complexity and delivery risk. In addition, evolving structural, electrical and cooling systems are increasing complexities for future-ready builds.
Procurement conditions are also contributing to uneven cost outcomes. Price differences between Chinese and non‑Chinese suppliers are widening, while longer equipment lead times and the growing adoption of prefabricated and modular construction are adding variability to project budgets. At the same time, many legacy facilities are proving difficult to retrofit for high‑density AI workloads, steering owners toward alternative uses such as edge computing, warm storage and interconnection hubs.
“Developers across the region are navigating a more complex delivery environment. Power readiness, procurement decisions and site conditions have become central to project feasibility, particularly for AI-focused builds that require higher density infrastructure and faster deployment timelines,” said Sam Asher, Head of Development and Commercial Advisory, Project and Development Services, Asia Pacific.
Together, these forces are reshaping development strategies across APAC. Feasibility is increasingly defined by access to power, supply‑chain resilience and the ability to deliver AI‑ready infrastructure at scale. As operators accelerate their AI strategies, markets that can combine reliable power, advanced technical capability and predictable delivery pathways are emerging as the region’s strongest contenders for the next wave of digital infrastructure investment.
Regional Construction Cost Index
(ranked by mid-range cost and based on a mid-specification build)
|
Market |
Low $ / MW |
Mid $ / MW |
High $ / MW |
YOY Change |
|
Japan |
13,000,000 |
16,000,000 |
19,200,000 |
20.9% |
|
Singapore |
12,000,000 |
14,400,000 |
17,900,000 |
22.7% |
|
South Korea |
8,500,000 |
10,600,000 |
13,200,000 |
11.5% |
|
Australia |
7,900,000 |
10,000,000 |
12,100,000 |
3.8% |
|
Hong Kong, China |
7,700,000 |
9,800,000 |
11,900,000 |
4.4% |
|
Malaysia |
6,900,000 |
9,600,000 |
12,000,000 |
9.3% |
|
New Zealand |
7,300,000 |
9,300,000 |
11,200,000 |
0.0% |
|
Thailand |
7,000,000 |
8,800,000 |
10,500,000 |
14.7% |
|
Indonesia |
6,600,000 |
8,300,000 |
11,200,000 |
5.0% |
|
Philippines |
6,600,000 |
8,200,000 |
10,300,000 |
17.7% |
|
India |
5,900,000 |
7,400,000 |
9,000,000 |
3.8% |
|
Vietnam |
5,700,000 |
7,200,000 |
8,700,000 |
3.8% |
|
Chinese Mainland |
5,600,000 |
7,100,000 |
8,600,000 |
0.4% |
|
Taiwan, China |
5,200,000 |
6,500,000 |
7,900,000 |
1.7% |
Click here for additional insights on data centre trends and market developments across APAC.
